Zhongxin Finance, January 18th. In response to the central bank's unexpected reduction of MLF and reverse repurchase rates on the 17th, the market is concerned about whether there will be a corresponding reduction in LPR this week. At the press conference of the State Council Information Office held on the 18th, Sun Guofeng, director of the Monetary Policy Department of the People's Bank of China, responded that LPR will fully reflect changes in market interest rates in a timely manner, guide corporate loan interest rates to decline, and effectively reduce corporate financing costs.
Sun Guofeng said that since the beginning of this year, the People's Bank of China has strengthened cross-cycle adjustment, increased liquidity provision, and pushed the one-year medium-term lending facility and the seven-day open market operation interest rates on January 17 to drop by 10 basis points. The bond market interest rate has also declined accordingly. LPR quotation banks comprehensively consider their own capital cost, risk premium, market supply and demand and other factors when quoting. LPR will fully reflect the changes in market interest rates in a timely manner, guide the decline in corporate loan interest rates, and effectively reduce the comprehensive financing cost of enterprises.
According to Sun Guofeng, on January 17, the central bank launched a 700 billion yuan one-year medium-term loan facility operation and a 100 billion yuan seven-day open market reverse repurchase operation to increase liquidity supply and hedge against the peak of the January tax period in advance. Affected by short-term factors such as the accelerated issuance of government bonds and cash injection before the Spring Festival, the liquidity was kept reasonably sufficient, and the interest rates for the medium-term lending facility and open market reverse repurchase bids were both reduced by 10 basis points.
Among them, the 1-year medium-term lending facility winning rate fell from 2.95% to 2.85%, and the 7-day open market reverse repurchase operation winning rate fell from 2.20% to 2.10%.
The drop in interest rates for medium-term lending facilities and open market operations reflects the proactive action of monetary policy, which is conducive to boosting market confidence, reducing corporate loan interest rates through LPR transmission, promoting the decline in bond interest rates, and promoting corporate comprehensive financing costs. Stability and decline will help stimulate the financing needs of market players, enhance the stability of total credit growth, support the issuance of national debt and local government bonds, stabilize the broader economic market, and maintain a balance between internal and external balances.
(Finish)